HSBC in talks to sell Pakistan bank to Meezan

LONDON

The signage of the HSBC bank is seen at a branch at Hayes in west London February 24, 2014.

Reuters/Luke MacGregor

LONDON (Reuters) - HSBC (HSBA.L) said it is talks to sell its business in Pakistan to Meezan Bank Limited (AMZN.KA), another possible sale by Europe's biggest bank from countries where it is unprofitable or lacks scale.

HSBC's Pakistan business has 10 branches and it has been trying to sell it for the last two years, but a plan to sell it to JS Bank Limited (JSBL.KA) fell through last October after failing to get regulatory approval.

HSBC said on Thursday the talks with Meezan Bank "are at a preliminary stage" and will require regulatory approvals.

HSBC has sold or closed 63 businesses in the last three years to reduce risk and boost profitability, and on Wednesday agreed to sell its bank in Kazakhstan.